Greed

Solana

Bitcoin

Today, the crypto market performance appears flat and red, contrasting with recent volatility where there was a wide price fluctuation. Currently, many cryptocurrencies are trading way below their all time highs. In this article, we will delve into factors contributing to the current market crash.&nbsp;
<h2 class="p2" id="strong-span-class-s1-crypto-market-performance-overview-span-strong">Crypto Market Performance Overview</h2>
<figure id="attachment_180287" aria-describedby="caption-attachment-180287" style="width: 100%" class="wp-caption aligncenter"><a href="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.37.png" rel="noopener noreferrer nofollow"><img decoding="async" class="size-full wp-image-180287" src="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.37.png" alt="Crypto Market Performance by Market Cap" width="1094" height="472" srcset="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.37.png 1094w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.37-300x129.png 300w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.37-768x331.png 768w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.37-150x65.png 150w" sizes="(max-width: 1094px) 100vw, 1094px"></a>
 <figcaption id="caption-attachment-180287" class="wp-caption-text">
 Crypto Market Performance by Market Cap
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</figure>
As of today, the global crypto market cap stands at $1.8 trillion, experiencing a marginal 0.7% decrease within the last 24 hours. Despite this decline, the total crypto market volume has seen a 1.47% increase, reaching $45.56 billion. Within the market, <a href="https://coingape.com/glossary/defi-decentralized-finance/#:~:text=Decentralized%20finance%20works%20on%20dApps,and%20can't%20be%20altered." rel="noopener noreferrer nofollow">DeFi (Decentralized Finance)</a> contributes $5.61 billion, constituting 7.61% of the total volume, while stable coins dominate with a volume of $67.43billion, representing 91.37% of the 24-hour volume. 
Bitcoin maintains its dominance at 52.52%, having plummet below $50,000 mark, experiencing a slight dip of 0.83% within the last 24 hours. Ethereum, the second-largest cryptocurrency, is currently valued at $2,635, marking a 0.46% decrease. Other major cryptocurrencies like BNB and <a rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/solana/">Solana</a> have also witnessed declines of 0.41% and 2.98%, respectively.
<h2 class="p2" id="strong-span-class-s1-why-is-the-crypto-market-falling-today-span-strong">Why is the Crypto Market Falling Today?</h2>
<h3 class="p2" id="strong-span-class-s1-1-bitcoin-s-dominance-and-performance-span-strong">1. Bitcoin’s Dominance and Performance:</h3>
Bitcoin, often regarded as the flagship cryptocurrency, exerts a significant influence on the entire crypto market. With its dominance reaching 52.52% and hovering around the $50,000 mark, <a href="https://coingape.com/price/bitcoin/#:~:text=Live%20Price%20of%20Bitcoin%20(BTC,market%20cap%20stands%20at%20%24925%2C617%2C091%2C549." rel="noopener noreferrer nofollow">Bitcoin’s price</a> fluctuations set the tone for other cryptocurrencies.
<figure id="attachment_180288" aria-describedby="caption-attachment-180288" style="width: 100%" class="wp-caption aligncenter"><a href="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.21.png" rel="noopener noreferrer nofollow"><img decoding="async" class="size-full wp-image-180288" src="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.21.png" alt="Bitcoin Dominance Chart" width="1063" height="437" srcset="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.21.png 1063w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.21-300x123.png 300w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.21-768x316.png 768w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.42.21-150x62.png 150w" sizes="(max-width: 1063px) 100vw, 1063px"></a>
 <figcaption id="caption-attachment-180288" class="wp-caption-text">
 Bitcoin Dominance Chart
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</figure>
When <a rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank">Bitcoin</a> experiences bullish trends, investors tend to flock to it as a safe haven, potentially diverting funds from altcoins and leading to their decline. Moreover, Bitcoin’s market cap, being a substantial portion of the total crypto market cap, directly impacts the overall market performance.
<h3 class="p2" id="strong-span-class-s1-2-trading-volume-and-market-sentiment-span-strong">2. Trading Volume and Market Sentiment:</h3>
Despite a slight increase in trading volume, most cryptocurrencies have witnessed substantial price decreases today. This surge in volume reflects a<a href="https://coingape.com/glossary/bear-market-2/" rel="noopener noreferrer nofollow"> bearish sentiment</a> among investors, indicating high selling activity and a belief that prices will continue to decrease. The current trend showcases weakness in the market, with selling pressure outweighing buying interest.
<h3 class="p1" id="span-class-s1-b-3-liquidation-activity-b-span">3. Liquidation Activity:</h3>
The recent <a href="https://coingape.com/crypto-market-faces-130-mln-liquidation-opportunity-or-warning-sign-next-week/" rel="noopener noreferrer nofollow">surge in liquidation activity</a>, totaling $130 million within 24 hours, has ignited speculation within the crypto market. CoinGlass data reports a substantial liquidation event affecting 42,328 traders, with a total liquidation amount of $128.54 million. Bitcoin, Ethereum, and Solana were among the most affected cryptocurrencies, with Bitcoin leading individual liquidations at $50.58 million, raising questions about the market’s trajectory in the coming days.
<h3 class="p2" id="strong-span-class-s1-will-the-crypto-market-recover-span-strong">Will the Crypto Market Recover?</h3>
Market sentiment plays a crucial role in determining the future trajectory of the crypto market. As indicated by the <a href="https://coingape.com/tag/fear-and-greed-index/" rel="noopener noreferrer nofollow">Fear and Greed Index</a>, investor sentiment is currently at 71, signifying a ‘greedy’ outlook. Investors are optimistic and inclined to enter bullish positions or take risks. However, it is important to note that market recovery is not solely guaranteed by greed. A high greed level could be an indication that the market is overboard and is heading towards a correction.
Short-term price fluctuations driven by sentiment may not always align with the underlying fundamentals. Ultimately, market recovery depends on various factors, including economic conditions, corporate earnings, and global events, rather than just emotional reactions.
<figure id="attachment_180289" aria-describedby="caption-attachment-180289" style="width: 100%" class="wp-caption aligncenter"><a href="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.41.53.png" rel="noopener noreferrer nofollow"><img decoding="async" class="size-full wp-image-180289" src="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.41.53.png" alt="Greed and Fear Index Chart" width="1074" height="461" srcset="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.41.53.png 1074w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.41.53-300x129.png 300w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.41.53-768x330.png 768w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-14-at-08.41.53-150x64.png 150w" sizes="(max-width: 1074px) 100vw, 1074px"></a>
 <figcaption id="caption-attachment-180289" class="wp-caption-text">
 Greed and Fear Index Chart
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</figure>
However, renowned crypto analyst Michaël van de Poppe’s positive forecast for Bitcoin’s price hitting about $55,000 after <a href="https://coingape.com/glossary/bitcoin-halving/" rel="noopener noreferrer nofollow">bitcoin halving</a> indicates confidence in the market’s enduring bullish path despite temporary ups and downs.
The post <a href="https://coingape.com/blog/crypto-market-is-crypto-market-falling-today/" rel="noopener noreferrer nofollow">Crypto Market : Is Crypto Market Falling Today?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Crypto Market : Is Crypto Market Falling Today?

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